Greenvale AP has acquired Swancote Foods, which supplies its products to the convenience, ready meal and food ingredient markets, for an undisclosed sum.
The acquired business will continue to trade under the Swancote Foods brand with the existing management team remaining with the business.
A statement from Greenvale read: “This is a very positive and exciting move that is entirely complimentary to both businesses. The benefits of such an acquisition flow in both directions and it is our firm belief that both businesses will be in a stronger position to meet the future challenges of the industry.”
The deal was funded by debt provided by Clydesdale Bank, which was arranged by Paul Argent, a director of its Specialist & Acquisition Finance team.
Argent explained that he has known the management team for several years and the company has been one of the bank’s clients since 2006 when it re-financed the business.
“Clydesdale Bank won this business on the strength of our relationship offer, competitive terms, our flexible and fully integrated funding package and the bank’s strong presence in the UK’s agricultural/food sector.
“The acquisition of Swancote Foods provides a number of key benefits for the Greenvale Group,” he added. “It diversifies the group’s existing customer base and there are a number of key synergies with Greenvale’s existing activities.”
Greenvale’s legal adviser was Howes Percival LLP, which was led by partner Brandon Ransley. The firm’s team included tax, employment and environmental specialists.
Howes Percival has advised Greenvale since 1996 and in that time has acted on several transactions including the public offer by Produce Investments to buy the business.
“As part of the transaction, two of the vendor shareholders of Swancote Foods remain involved in the new enlarged group of companies,” Ransley said.
“In particular, one of the vendor shareholders, Edward Davies, has joined the board of Produce Investments. Partly due to these ongoing connections, the deal was conducted in a good spirit with all parties working hard to resolve issues. In such amicable circumstances, it was very satisfying to see the deal through to a successful conclusion.”
Greenvale AP supplies the UK’s premier retailers, caterers and processing outlets with high quality potatoes. It is owned by Produce Investments.
